Chapter 2 - Conceptualizing and Initializing the IT Project

Question 1

Describe the Project Life Cycle

Answer 1

The Project Life Cycle (PLC) is a collection of logical stages or phases that map a project from beginning to end. Each phase should provide one or more deliverable.
Stages are :
Initializing - defining project goal, Deliverable: Business Case
Planning - defines scope, schedule, budget, Deliverable: Project Charter and Plan
Executing - manages scope schedule and budget. progress is documented, performance is communicated to stakeholders. Deliverable: Product
Closing - ensures that all work is completed as planned. Deliverable: final project report and presentation to the client
Evaluating - Lessons learned, peer evaluation. Deliverable: project evaluation and lessons learned

Question 2

What are phase exits and kill points? What purpose do they serve?

Answer 2

Phase exits are the end of each phase where a deliverable is provided. Phase exits serve to identify the different phases and track progress throughout the course of the project.
Kill points are points at which the organization chooses to kill the project. Kill points serve as a way for the company to shut down the project if it strays too far out of budget or away from the original project plan.

Question 3

What is fast tracking? When should it be used or not used?

Answer 3

fast tracking is when the next phase of the project is started before the previous phase has been approved. Fast tracking can be used to decrease the projected schedule. However overlapping phases involves more risk that the previous phase may not be approved and the work being done on the current phase may have been wasted effort which is not cost effective.

Question 4

Describe the Systems Development Life Cycle (SDLC)

Answer 4

Sequential phases or stages an information system follows throughout its life.
Planning - formal planning determining scope, schedule and budget.
Analysis - Examine the situation more closely. Learn more about the current situation and what works and what doesnt. Specific needs and requirements of the project are determined.
Implementation - development or construction of the system, installation and testing.
Maintenance and Support - Changes to the system, newly discovered bugs, enhancements

Question 5

What are the advantages of having and following a project methodology?

Answer 5

A methodology provides a strategic-level plan for managing and controlling IT projects. A template for implementing the different phases of project management. Provides a game plan so the team doesn’t have to focus on what the next step it. Provides a common language so that someone in any level of the organization can understand the plan.

Question 6

Describe the 5 phases of IT project methodology

Answer 6

1 - Conceptualize and Initialize: Define Project Goal. Analysis of alternatives, MOV. –Business Case
2 - Develop Project Charter and Plan: defines scope, budget and schedule. Identifies project team members. Lists resources. Analysis of how the project aligns with the organizations business strategy.
3 - Execute and Control: SDLC
4 - Close Project: Control of the system is transferred from project team to client or sponsor. Final project report and presentation. Formal approval and acceptance. Closing accounts etc.
5 - Evaluate project success: Team assesses what went well and what could have gone better. Lessons learned documented and distributed, resulting in the evolution of the methodology.

Question 7

Why is it important to have deliverables for each phase of the IT project methodology?

Answer 7

Identifies the completion of a phase and allows for assessment of the project. Provides and opportunity for the client to look at the deliverable and decide whether its worthwhile to continue with the project or just to kill it.

Question 8

How can the experiences of and lessons learned by past project team members be incorporated into a project methodology?

Answer 8

Lessons learned is incorporated in the Evaluating phase of the project methodology. The lessons learned are documented, distributed and kept on record so that all members of the project team can use these lessons learned to update or improve their current methodology.

Question 9

What are the advantages of developing a detailed Project Plan after a project has been approved for funding?

Answer 9

After a project has been approved for funding the budget is set and the team can outline the scope and schedule of the project based on their budget size. It also gives the team a document to refer back to so all team members are on the same page and project stays withing scope, schedule and budget.

Question 10

Describe the 5 project management processes.

Answer 10

Initiating, Planning, Executing, Controlling and Closing.
Start the project, develop a workable plan, coordinate people and resources, ensure proper control and reporting mechanisms are in place so progress can be monitored, provide closure in terms of formal acceptance

Question 11

Why can a project that is developed under budget and before its deadline still be considered unsuccessful?

Answer 11

A project must provide some sort of measurable value to the organization. If a project is completed cheaply and on time but offers no value to the organization it is still a failure.

Question 12

What kinds of tools would be needed to support and IT project?

Answer 12

Tools support both the product and the processes. Tools and techniques for estimation, development, management of scope and budget and quality. As well as tools to support the development of the information system (hardware and software)

Question 13

Discuss how the project management knowledge areas support the IT project methodology

Answer 13

The PMBOK, supports the IT project methodology by providing a foundation of knowledge for supporting projects within a particular organization.

Question 14

What is a Business Case?

Answer 14

A business case is an analysis of the organizational value, feasibility, costs and benefits, and risk of the project plan.

Question 15

Why should an organization develop a business case?

Answer 15

The purpose of a business case is to provide senior management with all the information needed to make an informed decision about whether or not a project shoudl receive funding.

Question 16

What is the purpose of selecting a core team to develop a business case?

Answer 16

There are several advantages of selecting a core team to develop a business case. They include: Credibility, Alignment with Organizational Goals, Access to the real costs, Ownership, Agreement, Bridge Building.

Question 17

What is a projects Measurable Organizational Value (MOV)?

Answer 17

The Measurable Organizational Value is the projects goal and the measure of success. Must be measurable (in numbers), must provide value to the organization and align with their strategy and goals, Must be verifiable at the end of the project (Has an end date), Must be agreed upon, Guides the project throughout its life-cycle.

Question 18

Why must a projects MOV be agreed upon?

Answer 18

Agreeing on the MOV will align all project team members and stakeholders expectations from the project. Forces everyone to be on the same page.

Question 19

Describe how an MOV can support an organizations goals and strategies?

Answer 19

Depending on the project, the MOV may measure increase in sales, traffic to a website… some value that will indicate that value has been provided to the organization.

Question 20

What is a base case alternative, why should a company even consider a base case?

Answer 20

A base case describes how an organization would perform if it maintained the status quo. In some situations the base case may be the best alternative, it is important to be objective on all viable options

Question 21

Describe economic feasibility

Answer 21

Evaluates whether funds or resources exist to support the project.

Question 22

Describe technical feasibility

Answer 22

Will the current infrastructure support the alternative? Will new technology be needed? Does the current IT staff have the skills and experience to implement the proposed solutions? Evaluates whether technical resources and skills exist to support the project

Question 23

Describe organizational feasibility

Answer 23

How will people within the organization adapt to the proposed change. Will our current staff be able to adapt to the proposed project?

Question 24

What other types of feasibility are there to consider?

Answer 24

Legal and ethical feasibility. Are there any legal or ethical restrictions that would prevent the organization from moving forward with the project.

Question 25

How should the risk of each business case alternative be identified?

Answer 25

Each business case alternative should be analyzed by considering the Total Cost of Ownership.

Question 26

What is the Total Cost of Ownership?

Answer 26

The total cost of ownership refers to the total cost of acquiring, developing, maintaining and supporting the application over its useful life.
This includes Direct or Up Front costs, Ongoing Costs, and Indirect Costs

Question 27

What is Total Benefits of Ownership

Answer 27

Total benefits of ownership should address the benefits of an alternative over the course of its life. Benefits should take into consideration Increasing high-value work, Improving accuracy and efficiency, Improving decision making, Improving customer service. Must include all the direct, indirect and ongoing benefits.

Question 28

What is the difference between tangible and intangible benefits?

Answer 28

Tangible benefits are easy to identify and quantify (measure). Intangible benefits may be easy to identify but are more difficult to quantify. Increase in profits is a tangible benefit, using electronic filing rather than paper copies is intangible, you have to think of the printing and paper costs of the files in order to measure the benefit.

Question 29

What are some ways of quantifying tangible benefits?

Answer 29

Tangible benefits can be quantified by thinking about indirect costs that are cut or but thinking about the level of service. Compare the service to its competitors and how much it would cost to use their service compared to yours.

Question 30

Describe the payback method. What are some of the advantages or disadvantages of this method?

Answer 30

The payback method determines how long it will take to recover the initial investment. The payback method is straightforward and easy to understand. It is also useful for highlighting the risk associated with a particular investment. The disadvantage of using this method is that it does not consider the time value of money or cash flows beyond the payback period.

Question 31

Describe the breakeven method. What are some of the advantages or disadvantages of this method?

Answer 31

Similar to the payback method, the breakeven method determines when the investor starts to see a return on the project. It differs in that instead of measuring the return over time it measures it in transactions. So instead of saying the company will make its money back in 5 years, saying the company will sell 500 units of their products to break even. Advantages in that its straightforward and easy to understand. Disadvantages in that it doesn’t provide a timeline and you need to take into consideration the indirect costs of selling the product (salesperson hours etc)

Question 32

Describe the ROI method. What are some advantages or disadvantages of this method?

Answer 32

ROI (return on investment) takes into consideration the total value received or expected by an investment. It is calculated by dividing the net income by its total cost to return a percentage. The advantages of using this method is that the overall relationship between costs and benefits is easy to see, and many companies use ROI to determine whether its worth going forward with a project (requiring the project to have a projected minimum ROI to be worth it). The disadvantage is that ROI calculations can be difficult and complicated, you must be able to accurately define the costs and benefits.

Question 33

Why shouldn’t an organization take on less challenging projects?

Answer 33

Less challenging projects can lead to stagnation. The project may not provide a long term solution to a problem, and the IT staff may suffer professionally due to lack of a challenge.

Question 34

Describe the criteria that should be used in project selection.

Answer 34

Financial perspective: What is the ROI? and economic value added? This is the most straightforward criteria
Customer perspective: How will customers react to the “upgrade”. Should we target particular customers? Will this help us target customers to get repeat business?
Internal Process perspective: Are our internal processes efficient enough to undertake this project (in order to boost our customer satisfaction and financial gain)
Innovation and learning perspective: Will this project help our organization learn and grow? Will it improve our methodology and improve the skill levels of our employees?